Sasol Limited (SSL)

Sasol, a South African energy and chemicals group, reported its results for the year ended 30 June 2026 in its annual report on Form 20-F 1. Turnover, which is revenue, rose 9 percent to R272 118 million from R249 096 million 1. Earnings were R14 458 million, up from R7 726 million 1.

The company says higher product prices added R20 376 million and 4 percent higher sales volumes added R14 436 million 1. A stronger rand took R11 790 million off, as the average rand to US dollar rate strengthened 7 percent 1.

The Fuels segment drove the gain, with earnings before interest and tax of R19 903 million against R5 222 million a year earlier 1. Chemicals Africa made a loss of R3 339 million after asset write-downs 1.

One open question is the Qatar plant ORYX GTL, which the report says stayed offline after shutting down in early March 2026 because of the USA/Israel-Iran war 1. The board declared no dividend for the year 1.

Sasol was incorporated in South Africa in 1979 and has been listed on the JSE, the Johannesburg exchange, since October 1979 1. Its American depositary shares have been listed on the NYSE since 9 April 2003 1.

Fiscal 2020 ended in a loss of R91 917 million, as remeasurement items, the accounting term that covers asset write-downs, reached R111 978 million 2. Turnover then recovered to R201 910 million in 2021, helped by product prices that added R14 002 million 2.

In fiscal 2022 product prices added R95 962 million to turnover, with crude oil alone adding R42 392 million 2. Earnings reached R41 672 million that year, even though lower volumes took R16 199 million off 2.

Turnover peaked at R289 696 million in 2023, then fell 5 percent to R275 111 million in 2024 3. Lower product prices took R31 939 million off, and a weaker rand added back R15 577 million 3.

Fiscal 2024 was a loss of R44 245 million, after remeasurement items of R75 414 million 3. The report ties most of it to the ethane chain at Lake Charles in the United States, with impairment losses of R58,9 billion 1.

Revenue fell 9 percent to R249 096 million in fiscal 2025, mainly on lower sales volumes 1. The Secunda liquid fuels refinery was written down by R11 831 million that year 1. Fuels earnings before interest and tax fell to R5 222 million from R18 947 million, on a weaker rand oil price, lower refining margins and lower volumes 1.

Fiscal 2026 brought the recovery: turnover of R272 118 million and earnings of R14 458 million, helped by Fuels 1.

Fuels

The Fuels segment supplies liquid fuels to licensed wholesalers, to retailers and end-users, and by road and rail to other parts of Southern Africa 1. Its turnover rose 27 percent to R125 274 million, a margin of 16 percent on earnings before interest and tax 1.

Output at Secunda Operations was 8 percent higher, and the Natref refinery produced 76 percent more, helped by use of the capacity of its partner Prax SA during that company's business rescue 1. ORYX GTL, a 49 percent joint venture in Qatar, lost R470 million at the earnings line 1.

Chemicals

Chemicals Africa makes polymers, fertilisers, explosives, methanol, ammonia, gases and solvents, sold mainly to customers in South Africa 1. It lost R3 339 million before interest and tax, because impairments of R4 836 million, including R3 742 million on polyethylene, outweighed a profit of R1 497 million before such items 1.

International Chemicals runs four business divisions: Base Chemicals, Advanced Materials, Care Chemicals and Technical Formulations 1. Care Chemicals makes components for household detergents, fabric softeners and skin cleansers 1.

Chemicals America earned R4 097 million, up from R1 666 million, as sales volumes rose 20 percent on stronger cracker availability 1. Chemicals Eurasia earned R1 485 million, against a loss of R1 211 million a year earlier 1.

Gas and Mining

Gas sells piped gas to wholesalers and end-users in South Africa and produces gas in Mozambique 1. Its turnover fell 6 percent to R12 300 million, and a R3 822 million write-down on the Mozambique production sharing asset pulled earnings before interest and tax down to R1 212 million 1.

Mining supplies coal to the group, running six collieries for the Secunda and Sasolburg plants 1. A destoning plant, which improves coal quality, reached beneficial operation in December 2025 1.

Plants and people

The Secunda property covers about 79 square kilometres, of which operating plants take 8 1. Lake Charles in Louisiana, the largest United States site, covers about 6 square kilometres 1.

The permanent workforce was 27 239 at 30 June 2026, of whom 23 047 work in South Africa 1. Simon Baloyi became president and chief executive on 1 April 2024, and Walt Bruns joined the board as chief financial officer on 1 September 2024 1.

Problems and disputes

South Africa's tax authority assessed Sasol Financing International for 2002 to 2012, a dispute with a potential exposure of R3,1 billion that the company discloses as a contingent liability 1. The Supreme Court of Appeal heard the related appeal on 25 November 2025 and has not ruled 1.

SFT Energy is claiming damages of R1,2 billion and R2,2 billion from Sasol Oil over a fuel supply agreement and a liquidation, and Sasol Oil is defending both 1. Prax SA, its Natref partner, entered business rescue in October 2025 1.

The umbrella, in words

Sasol Limited is the ultimate holding company, and Sasol South Africa Limited primarily owns the operations in South Africa 1. Sasol Investment Company owns the interests in group companies outside South Africa, including Sasol (USA) Corporation 1.

Sasol owns 49 percent of ORYX GTL in Qatar and 50 percent of the LIP JV at Lake Charles, a joint venture with LyondellBasell 1. Equistar Chemicals, a LyondellBasell subsidiary, markets the polyethylene from the LIP JV 1.

Sasol agreed with Enaex Africa to supply it with explosives intermediates, and Enaex owns and runs part of the explosives assets inside the Secunda property 1. Sasol and Topsoe set up the 50/50 joint venture Zaffra in 2024, and its shareholders resolved on 25 June 2026 to wind it down 1.

No one controls Sasol, the report says 1. The Government Employees Pension Fund owned 19,24 percent of shares at 30 June 2026, and Konoil, linked to the Industrial Development Corporation, owned 8,22 percent 1.

Sasol says it intends to take over marketing and distribution of mono ethylene glycol from a third party on 1 January 2027 1. The third party handles it until 31 December 2026 1.

On gas prices, the regulator NERSA decided on 27 August 2026 on a maximum gas price method for the 2027 to 2028 financial years and deferred 2029 to 2030 until a competition assessment is done 1.

South Africa's Clean Fuels 2 regulations take effect on 1 July 2027 and require fuels with 10 parts per million of sulphur 1. Sasol says it is focused on meeting the date but cannot give assurances 1.

Sasol is targeting a 30 percent cut in scope 1 and 2 greenhouse gas emissions by 2030 from a 2017 baseline, with a net zero ambition for 2050 1. It says the remaining renewable energy projects are expected to start over the next two to three years 1.

Its dividend policy is to pay 30 percent of free cash flow when net debt, excluding leases, is sustainably below US$ 3bn 1. Net debt was R70 863 million at 30 June 2026, down from R82 249 million 1.

A Prax SA business rescue plan expects a sale of its Natref shareholding 1. The air quality licence for Secunda lets it operate to 31 March 2030, and a further dispensation will likely be needed beyond that date 1.